Iran's president says creation of a Palestinian state would not satisfy those intent on 'annihilating' Israel and again characterizes the Holocaust as a 'lie.'

Reporting from Tehran — Establishment of an independent Palestinian state would not stop efforts to wipe out Israel, Iranian President Mahmoud Ahmadinejad said Friday.

Palestinians are expected to present a petition to the United Nations General Assembly next month for full U.N. membership, which would confer international recognition of an independent Palestinian state. The United States is seeking to block any action on the bid.

Creation of a Palestinian state would not satisfy those intent on "annihilating" Israel, Ahmadinejad said, speaking at Iran's annual Quds Day rally in support of the Palestinian cause.

"Do not think that your existence will be recognized with the recognition of the Palestinian state," the Iranian president said, addressing Israel. "You have no place in our region and among our nations, and you will not be able to continue your ignominious life on even a small part of the Palestinian territories."

Ahmadinejad also renewed his previous characterizations of the World War II Holocaust as a "lie."

Tens of thousands of Iranians marched Friday in Tehran in Quds Day events; some observers said the crowds were smaller than those of last year. Authorities provided free bus and subway rides for attendees.